Estimating the Total Economic Value of Cultivated Flower Land in Taiwan

Abstract

Many arable land areas have been converted to residential or business uses by Taiwan government authorities, because the low farmland value is associated with the low value of agricultural products. However, agriculture is multifunctional. This study investigates farmland value through Total Economic Value (TEV) for Tianwei Township, which is Taiwan's largest floral farmland region. Direct use value measures the floral products' output value and recreational benefit. Recreational benefit from visitors' flower sightseeing was measured by the travel cost method (TCM). Option value and non-use value, including bequest value and existence value, measure the residents' willingness to pay through the double-bounded dichotomous contingent valuation method (CVM). The results show that the total floral products' output is NT$1.441 billion in 2007, recreational benefit is roughly NT$17.757 billion. The intangible value of option value and non-use values are approximately between NT$5 million to 15 million. Therefore, ignoring various values of farmland might lead to an underestimation of farmland value.

The Opportunity Cost of Labor for Valuing Mangrove Restoration in Mahakam Delta, Indonesia

“…Of the 380 distributed questionnaires, 364 were completed. [20,21]. CVM is based on interviews with people regarding a contingent valuation survey that presents them with a hypothetical scenario to elicit individuals' maximum willingness to pay (WTP) or willingness to accept (WTA).…”

The Total Economic Value of Sport Tourism in Belt and Road Development—An Environmental Perspective

“…I i denotes whether respondents accept or do not accept the price, and i = 1, 2, where I = 1 represents bid price accepted and I = 0 represents bid price not accepted. The log likelihood of the double-bounded dichotomous choice model for the survival function can be expressed as [34]:…”

“…The recreational benefits for participants can be estimated using the consumer surplus (CS) [34,47]:…”

“…, where µ i = exp(z i β), µ i is the mean and equal to the variance, z i is an independent variable, and β is a parameter of the exponential function [46]. The on-site Poisson corrects truncated and endogenous stratification, and the log-likelihood function can be expressed as follows [34]:…”

“…However, the option value includes users and nonusers, which depends on their decision whether or not to use it in the future. Huang and Wang (2015) and Plottu and Plottu (2007) separated option value as an independent value along with use value and non-use value [34,35].…”